Name: Syed Sarfaraz Khan
Student ID Number: 110074184
Assignment number: 1
When an organization announces a vacancy or an open job position then it can be filled by either someone internally from the company already working in another position or externally by somebody who is new to the business. For this firms need to consider different methods of hiring and try to create a pool of potential candidates with relevant skill level. There are pros and cons to both internal and external hiring. In the current economic scenario, companies look cut costs by hiring within their four walls rather than from the outside. it has been estimated that cost on finding and hiring someone externally is 1.7 times more than internal hiring. Furthermore, as per the research 40 to 60 percent of external hiring is unsuccessful as compare to 25% for internal. The trend of hiring from outside is no longer frequently practiced due to the tight economic situation. Through internal hiring the respect and morale in employees is increased by promoting them to higher positions. when given the chance to apply for the position the company is trying to appreciate the worker for her/his hard work and services to the company. internal candidates are usually accustomed to the culture of the organization, and the network is already well developed. Moreover, they tend to show loyalty towards the organization for a longer time period. The cost of internal hiring is significantly low as compare to external. Expenses like advertising the job, attending job fairs, working and recruitment agencies. Both money and time is saved on things like training, paperwork drug testing them with basics and unlike new employees they do not need adjustment periods to acclimate to the work environment and the transition for the person actively working into an open position is instant. Bernthal et al. (2001, p.1) Argues that “Indirect costs from lost productivity...
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